CCP Show Cause Notice to Bahria Town for Blocking Nayatel in Rawalpindi

A Show Cause Notice has been issued by the Competition Commission of Pakistan(CCP) to Bahria Town Private Limited by abstaining Nayatel to provide internet, cable and telephone (CIT) services in phase 1-6 of Bahrai Town Rawalpindi which is a violation of Competition Act by making wrong use of its dominant position.

CCP received a complaint from a resident of Bahrai Town that the management of Bahria Town is only allowing PTCL for CIT services to operate in its 1-6 phases which is a restriction of consumer choice after which the CCP started an inquiry to this matter.

It was found in the inquiry report that due to dominant position of Bahria Town in the market, the telephony and broadband services in Bahria Town phase 1-6 are under provision of the authority and it misused this position by hindering the way of Nayatel. The report found that the authority did that with bias which not only restrict competition in the market but also prevented customers to make any choice.

Now Bahria Town has a chance to present its case in front of a bench of CCP on 18th August 2016 after the issuance of this show cause notice.

It should be remembered that the businesses with dominant position in the market are prohibited to misuse their powers by refusal to deal, making unfair terms, prohibit competitors and distinguish between different trading partners according to the section 3 of the Competition Act 2010.

This case can make new rules and regulations for Bahria Town and other housing societies that contract with one company and block other companies in their areas.

CCP said it will do its duty to promote healthy competition in the areas of economic and commercial activities of country.